Mr. Frank Holmes reports
HIVE ANNOUNCES 10 MW EXPANSION OF GREEN ENERGY GPU DATA CENTRE IN SWEDEN, HODL AND ESG UPDATE
Hive Blockchain Technologies Ltd. has received confirmation from Bodens Energi Nat AB for an additional guaranteed 10 megawatts of green energy electricity for its GPU data centre in Sweden. This increase is on top of the previously announced two-megawatt expansion on Jan. 28, 2021. These combined expansions increase the capacity of the facility by over 50 per cent from 21 MW to 33 MW. Currently, it is securing new state-of-the-art performing GPU cards for this expansion.
As previously announced in April of this year, Hive started mining Ethereum Classic before the prices surged to the current price of $75 (U.S.) a coin, and continues to mine Ethereum Classic due to its profitability. It has chosen to mine and sell Ethereum Classic to assist in covering electricity and basic general and administrative costs while saving in cold wallets its Bitcoin and Ethereum production.
Only crypto miner mining Ethereum and coin inventory (hodl)
Hive continues to be a holder of mined Bitcoin and Ethereum coins and has been banking them in cold wallets. Its continued strategy is to continue holding coins, as it feels that it will benefit its shareholders. The current dollar value of its crypto assets is approximately $79-million (U.S.) (based on $2,700 (U.S.) Ethereum and $38,500 (U.S.) Bitcoin), and cash is $36-million (U.S.). The value of the coins has been volatile while its cash position remains stable and healthy.
This hodl strategy has led to the strengthening of the company's balance sheet and liquidity, which is a substantial improvement from where it was a year ago.
ESG (environmental, social and corporate governance) strategy -- Bitcoin mining council, Michael Saylor and Elon Musk meeting
Recently, there has been substantial volatility due to Mr. Musk's pronouncements and then China's shutdown in crypto mining. It is great news for the global economy that China is shutting down mining, which is mostly from coal-generated electricity.
Frank Holmes, executive chairman, said: "It was great to participate in the special meeting held on Sunday, May 23, 2021, championed by Michael Saylor and special guest Elon Musk, along with [chief executive officers] from many of the largest crypto mining companies.
"The meeting was productive, and the bottom line is we agreed to establish a Bitcoin mining council to promote education, transparency on sources of energy and accountability for sustainable mining. Further, this new organization will strive to standardize energy reporting and set a high bar for ESG standards of care. We believe there is a major macroshift happening, and crypto mining is shifting to North America and Europe, where executives are more serious and responsible about lowering their carbon footprint. I was proud that not only were we the first public crypto mining company in 2017, but that we have always had an ESG strategy and a focus on only mining with green energy. Finally, I was pleased to see other CEOs agree to our goals and would like to thank Michael Saylor for his stewardship and Elon Musk for his ideas and candour."
Global logistics and chip challenges
As the company has mentioned before, the COVID-19 pandemic continues to impact logistics and the supply of miners from Asia. Today's announcement is part of the company's continuing strategy to increase GPU mining capacity. Hive intends to continue utilizing cash flow to make opportunistic investments in ASIC and GPU new- and next-generation mining equipment that can provide positive gross mining margins.
About Hive Blockchain Technologies Ltd.
Hive Blockchain is a growth-oriented, TSX Venture Exchange-listed company, building a bridge from the blockchain sector to traditional capital markets. Hive owns state-of-the-art green-energy-powered data centre facilities in Canada, Sweden and Iceland, which produce newly minted digital currencies like Bitcoin and Ethereum continuously on the cloud. Its deployments provide shareholders with exposure to the operating margins of digital currency mining, as well as a portfolio of crypto-coins.
We seek Safe Harbor.
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